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Transfer of legal title is the general guideline used to determine whether an item should be included in inventory. We discussed in class three

Transfer of legal title is the general guideline used to determine whether an item should be included in inventory. We discussed in class three situations that complicate this guideline: sales with buyback agreement, sales with high rates of return and sales on installment. Required: Discuss the issues with each of these situations. Include in your discussion if and/or when it is appropriate to record the sale and remove the item from inventory.

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